Bron Suchecki: Fractional reserve bullion banking, Part 2

Section:

8:30a ET Tuesday, September 22, 2015

Dear Friend of GATA and Gold:

Perth Mint research director Bron Suchecki today offers the second installment of his series about fractional-reserve bullion banking. He notes that leverage in a bullion bank's business may not be as great as suspected, since some of the bank's gold obligations may not be immediately callable but instead limited by longer maturities. But, Suchecki adds, if a bank's gold obligation maturities don't match well or there is unexpected demand for metal, the bank may be forced to try to buy gold in the market or borrow it from another bullion bank or a central bank.

Of course, as GATA has noted, that is where the fun may start, including surreptitious central bank intervention in the gold and currency markets for price suppression.

Suchecki's analysis is headlined "Fractional Reserve Bullion Banking, Part 2" and it's posted at the Perth Mint's Internet site here:

http://research.perthmint.com.au/2015/09/21/fractional-reserve-bullion-b...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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